Feldman Mall Properties, Inc. Announces the Termination of the Inland Transaction
27 Janvier 2009 - 10:00PM
PR Newswire (US)
GREAT NECK, N.Y., Jan. 27 /PRNewswire-FirstCall/ -- Feldman Mall
Properties, Inc. (Pink Sheets: FMLP) announced today that it has
received notice that Inland American Real Estate Trust, Inc.
("Inland") has exercised its rights to terminate the letter
agreement that was previously announced on November 14, 2008. The
agreement with Inland provided that Feldman would repurchase from
Inland 2,000,000 shares of 6.85% Series A Cumulative Convertible
Preferred Stock (the "Series A Preferred Stock"). In exchange,
Inland would have received title to the Stratford Square Mall,
located in Bloomingdale, Illinois; Northgate Mall, located in
Cincinnati, Ohio; and the Golden Triangle Mall, located in Denton,
Texas (collectively, the "Malls"); subject to the mortgage
indebtedness secured by the Malls. Inland would also have delivered
to the Company $9.125 million in cash representing the amount by
which the value of the Malls, subject to the outstanding
indebtedness, exceeded the value of the Series A Preferred Stock.
As a result of the termination of the transaction with Inland, the
Company will need to raise capital from an alternative source in
order to retire the $28.5 million principal amount of unsecured
fixed and floating rate junior subordinated notes and related trust
preferred securities. In addition, the Company will need to raise
sufficient additional capital or negotiate appropriate
modifications to existing debt arrangements in order to continue to
fund its ongoing operations. However the current economic and
business environment makes the achievement of any such alternative
transactions especially difficult and there can be no assurance
that any such transactions will be completed. About Feldman Mall
Properties, Inc. The Company's common shares are quoted on Pink OTC
Markets, a privately owned company formally known as Pink Sheets,
which operates Pink Quote. The Company's portfolio, including
non-owned anchor tenants, consists of six regional malls
aggregating approximately 5.8 million square feet. For more
information on Feldman Mall Properties Inc., visit the Company's
website at http://www.feldmanmall.com/. DATASOURCE: Feldman Mall
Properties, Inc. CONTACT: Thomas E. Wirth, President & Chief
Financial Officer of Feldman Mall Properties, Inc., +1-516-684-1239
Web site: http://www.feldmanmall.com/
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